Financial faith integration

Austerity as ideological opportunity As prominent economist Ha Joon Chang has written many times, the UK's problems go far deeper than the cuts agenda. British debate on economic policy is getting nowhere.

Financial faith integration

The second was a policy of indirect rule, where the British assumed suzerainty and paramountcy over princely states, but conceded to them sovereignty and varying degrees of internal self-government. The British took the view that because they had been established directly between the British crown and the princely states, they could not be transferred to the newly independent dominions of India and Pakistan.

The British government therefore decided that paramountcy, together with all treaties between them and the princely states, would come to an end upon the British departure from India. The termination of paramountcy meant that all rights flowing from the states' relationship with the British crown would return to them, leaving them free to negotiate relationships with the new states of India and Pakistan "on a basis of complete freedom".

A few British leaders, particularly Lord Mountbattenthe last British viceroy of Indiawere also uncomfortable with breaking links between independent India and the princely states. The development of Financial faith integration, commerce and communications during the 19th and 20th centuries had bound the princely states to the British India through a complex network of interests.

Mountbatten was also persuaded by the argument of Indian officials such as V. Menon that the integration of the princely states into independent India would, to some extent, assuage the wounds of partition.

The result was that Mountbatten personally favoured and worked towards the accession of princely states to India following the transfer of power, as proposed by the Congress. Some, such as the rulers of Bikaner and Jawharwere motivated to join India out of ideological and patriotic considerations, [26] but others insisted that they had the right to join either India or Pakistan, to remain independent, or form a union of their own.

An important factor was the lack of unity among the princes. The smaller states did not trust the larger states to protect their interests, and many Hindu rulers did not trust Muslim princes, in particular Hamidullah Khanthe Nawab of Bhopal and a leading proponent of independence, whom they viewed as an agent for Pakistan.


The resultant inability to present a united front or agree on a common position significantly reduced their bargaining power in negotiations with the Congress. The latter two were respectively the political and administrative heads of the States Departmentwhich was in charge of relations with the princely states.

Mountbatten's role[ edit ] Lord Louis Mountbatten played an important role in convincing reluctant monarchs to accede to the Indian Union.

Mountbatten believed that securing the states' accession to India was crucial to reaching a negotiated settlement with the Congress for the transfer of power. The princes also believed that he would be in a position to ensure that independent India adhered to any terms that might be agreed upon, because Prime Minister Jawaharlal Nehru and Patel had asked him to become the first Governor General of the Dominion of India.

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He declared that the British Government would not grant dominion status to any of the princely states, nor would it accept them into the British Commonwealthwhich meant that the states would sever all connections with the British crown unless they joined either India or Pakistan.

He engaged in a personal dialogue with reluctant princes, such as the Nawab of Bhopal, who he asked through a confidential letter to sign the Instrument of Accession making Bhopal part of India, which Mountbatten would keep locked up in his safe.

It would be handed to the States Department on 15 August only if the Nawab did not change his mind before then, which he was free to do. The Nawab agreed, and did not renege over the deal. By far the most significant factor that led to the princes' decision to accede to India was the policy of the Congress and, in particular, of Patel and Menon.

The Congress' stated position was that the princely states were not sovereign entities, and as such could not opt to be independent notwithstanding the end of paramountcy. The princely states must therefore accede to either India or Pakistan. Rajagopalachariargued that as paramountcy "came into being as a fact and not by agreement", it would necessarily pass to the government of independent India, as the successor of the British.

Instead, it emphasised the unity of India and the common interests of the princes and independent India, reassured them about the Congress' intentions, and invited them to join independent India "to make laws sitting together as friends than to make treaties as aliens".

Unlike the Political Department of the British Government, it would not be an instrument of paramountcy, but a medium whereby business could be conducted between the states and India as equals. Two key documents were produced. The first was the Standstill Agreementwhich confirmed the continuance of the pre-existing agreements and administrative practices.

The second was the Instrument of Accessionby which the ruler of the princely state in question agreed to the accession of his kingdom to independent India, granting the latter control over specified subject matters.

The states which had internal autonomy under the British signed an Instrument of Accession which only ceded three subjects to the government of India—defence, external affairsand communications, each defined in accordance with List 1 to Schedule VII of the Government of India Act Rulers of states which were in effect estates or talukaswhere substantial administrative powers were exercised by the Crown, signed a different Instrument of Accession, which vested all residuary powers and jurisdiction in the Government of India.

Rulers of states which had an intermediate status signed a third type of Instrument, which preserved the degree of power they had under the British.

Clause 7 provided that the princes would not be bound to the Indian constitution as and when it was drafted. Clause 8 guaranteed their autonomy in all areas that were not ceded to the Government of India. Rulers who agreed to accede would receive guarantees that their extra-territorial rights, such as immunity from prosecution in Indian courts and exemption from customs duty, would be protected, that they would be allowed to democratise slowly, that none of the eighteen major states would be forced to merge, and that they would remain eligible for British honours and decorations.

A few, however, held out. Some simply delayed signing the Instrument of Accession. Piplodaa small state in central India, did not accede until March Border states[ edit ] The ruler of Jodhpur, Hanwant Singhwas antipathetic to the Congress, and did not see much future in India for him or the lifestyle he wished to lead.

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Financial faith integration

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